Building strong relationships is the cornerstone of our success. At JPMorgan Chase, we place particular value in our supplier partnerships. Thanks to the help of a diverse range of suppliers and advisors, we are able to serve our clients, shareholders, communities and employees more efficiently.
JPMorgan Chase seeks to amplify the positive impact of supplier diversity by asking our suppliers (companies that sell directly to our firm) to also do business with diverse companies.
Our firm tracks the dollars our suppliers spend with diverse businesses. We refer to this as Tier 2 Spend.
Tier 2 Spend dollars can be measured in two ways: Direct and Indirect. JPMorgan Chase accepts both.
When suppliers engage diverse businesses directly on JP Morgan Chase contracts and report the amount paid to diverse suppliers, we consider this Direct Spend. Each 2nd tier dollar can be traced back to a specific diverse supplier and to a specific project.
Indirect Spend is calculated by prorating the supplier's company-wide diverse spend with the percentage of its total business represented by JP Morgan Chase’s business. (For example, if the supplier spends $100 million annually with diverse suppliers and JPMorgan Chase represents 1% of its total business, the 2nd tier spend would be $1 million ($100 million x 1%).
We have a dedicated reporting system to enable our suppliers to report their diverse spend on a quarterly basis. There is a 45-day submission period for each report. For example, the first quarter’s report includes spend from January–March. The reporting period for Q1 is April 1st–May 15th.
If you are a current Tier 2 Spend-reporting supplier and would like to access the JPMorgan Chase Tier 2 Reporting portal please click here.
